The Truth About Cars » Francehttp://www.thetruthaboutcars.com
The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news.Wed, 25 Mar 2015 21:03:06 +0000en-UShourly1http://wordpress.org/?v=4.0.1The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news.The Truth About CarsnoThe Truth About Carseditors@ttac.comeditors@ttac.com (The Truth About Cars)2006-2009The Truth About CarsThe Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news.The Truth About Cars » Francehttp://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gifhttp://www.thetruthaboutcars.com
Reithofer: Government Programs Key To BMW i3 Successhttp://www.thetruthaboutcars.com/2015/03/reithofer-government-programs-key-bmw-i3-success/
http://www.thetruthaboutcars.com/2015/03/reithofer-government-programs-key-bmw-i3-success/#commentsWed, 25 Mar 2015 11:00:26 +0000http://www.thetruthaboutcars.com/?p=1028841BMW’s i3’s success is helped by a number of government incentives in a few of the automaker’s key markets, according to CEO Norbert Reithofer. According to Automotive News Europe, Reithofer said that sales figures for the i3 are connected to political initiatives toward electric mobility, adding that when those initiatives are there, “the registration figures […]

BMW’s i3’s success is helped by a number of government incentives in a few of the automaker’s key markets, according to CEO Norbert Reithofer.

According to Automotive News Europe, Reithofer said that sales figures for the i3 are connected to political initiatives toward electric mobility, adding that when those initiatives are there, “the registration figures for the BMW i3 soar.”

The CEO cited Norway as an example, where the government not only has a charging infrastructure where owners can park and recharge for free, but does not levy sales or registration taxes on EVs. Those incentives have helped BMW move 2,000 i3s in 2014.

Meanwhile, significant financial subsidies in the United States, as well as privileges such as use of dedicated HOV lanes, led to sales of 3,000 units in California alone, a figure that is half of all i3s sold in the U.S.

Other incentives include looser licensing restrictions in Shanghai, circulation tax exemptions for 10 years from date of first registration in Germany, and company car tax exemptions for life in France.

Speaking of Germany, where 2,000 i3s were sold in 2014, Reithofer said his country’s government needs to “pick up the pace” in pushing electric mobility. Germany wants 1 million EVs on its roads by 2020, and has plans to offer additional incentives to achieve its goal.

In the meantime, BMW will introduce its DriveNow car-sharing service this spring, beginning in London. San Francisco will be the first U.S. city in the program by May, while the German cities of Hamburg, Berlin and Munich will join in July. The program is meant to help boost acceptance of electrification, and widening the tech’s appeal among younger drivers.

]]>http://www.thetruthaboutcars.com/2015/03/reithofer-government-programs-key-bmw-i3-success/feed/5Paris To Begin Rolling Ban On Older Vehicles This Summerhttp://www.thetruthaboutcars.com/2015/02/paris-begin-rolling-ban-older-vehicles-summer/
http://www.thetruthaboutcars.com/2015/02/paris-begin-rolling-ban-older-vehicles-summer/#commentsMon, 16 Feb 2015 12:00:21 +0000http://www.thetruthaboutcars.com/?p=1002010Want to continue to drive in Paris? You’ll need a new vehicle starting this summer, when the French city begins restricting older vehicles from its heart. Autocar reports buses and trucks registered prior to October 2001 will all be barred from entering the city center starting this summer; cars registered before January 1997 will be […]

Want to continue to drive in Paris? You’ll need a new vehicle starting this summer, when the French city begins restricting older vehicles from its heart.

Autocar reports buses and trucks registered prior to October 2001 will all be barred from entering the city center starting this summer; cars registered before January 1997 will be prohibited in 2016. The restrictions will roll forward through 2020, when cars registered after 2011 and motorcycles registered after this July will be the only ones allowed within.

]]>http://www.thetruthaboutcars.com/2015/02/paris-begin-rolling-ban-older-vehicles-summer/feed/97France Encouraging Diesel Drivers To Go Electric Via €10K Incentivehttp://www.thetruthaboutcars.com/2015/02/france-encouraging-diesel-drivers-go-electric-via-10k-incentive/
http://www.thetruthaboutcars.com/2015/02/france-encouraging-diesel-drivers-go-electric-via-10k-incentive/#commentsFri, 06 Feb 2015 15:00:53 +0000http://www.thetruthaboutcars.com/?p=994258Starting in April, France will encourage diesel drivers to replace their oil burners with electric power through an incentive up to €10,000 ($11,422 USD). Automotive News Europe the incentive would help “convince buyers to try an electric car,” per a Renault representative. The automaker’s Zoe would leave the showroom with a price of €12,400 ($14,203) […]

Starting in April, France will encourage diesel drivers to replace their oil burners with electric power through an incentive up to €10,000 ($11,422 USD).

Automotive News Europe the incentive would help “convince buyers to try an electric car,” per a Renault representative. The automaker’s Zoe would leave the showroom with a price of €12,400 ($14,203) instead of €22,400 ($25,658), while its partner Nissan would see a drop from €18,090 ($21,650) to €14,390 ($16,483).

France Energy Minister Ségolène Royal says the nation “must eliminate old diesel cars that are more than 13 years old and have no filters,” adding that measures will make diesel “harder and harder” to use overall.

One measure in particular would align diesel taxes with those of gasoline. The alignment would help reduce smog, according to Royal, stating that “60 percent of the French population breathes air that isn’t healthy.”

At present, 80 percent of all French drivers move about with diesel power, though new-diesel sales have declined over the past two years, from 73 percent of all new cars to 64 percent.

]]>http://www.thetruthaboutcars.com/2015/02/france-encouraging-diesel-drivers-go-electric-via-10k-incentive/feed/62France Begins Divorce Proceedings Against Dieselhttp://www.thetruthaboutcars.com/2014/12/france-begins-divorce-proceedings-diesel/
http://www.thetruthaboutcars.com/2014/12/france-begins-divorce-proceedings-diesel/#commentsTue, 02 Dec 2014 11:00:34 +0000http://www.thetruthaboutcars.com/?p=954617For the longest time, France loved the diesel. Alas, the thrill has gone away. Just-Auto reports the French government introduced a program aimed at removing the most polluting vehicles — diesel-powered passenger vehicles in particular — from the roadways, along with provisions for local officials to limit access to said vehicles. Prime minister Manuel Valls […]

For the longest time, France loved the diesel. Alas, the thrill has gone away.

Just-Auto reports the French government introduced a program aimed at removing the most polluting vehicles — diesel-powered passenger vehicles in particular — from the roadways, along with provisions for local officials to limit access to said vehicles. Prime minister Manuel Valls laid it out as such:

In France, we have long favoured the diesel engine. This was a mistake, and we will progressively undo that, intelligently and pragmatically.

Presently, 80 percent of the nation’s drivers operate diesel-powered vehicles, thanks to the lower price for the fuel over gasoline. Thus, to encourage them to consider more eco-friendly options, the government will raise the excise tax on diesel to €2 ($2.50 USD) per liter, and will begin in 2015 to identify vehicles by the amount of pollution they produce. Further, energy minister Segolene Royal introduced earlier in 2014 a tax credit of up to €10,000 ($13,500) for exchanging their diesels for an electric vehicle, while other subsidies linked to the new plan will help drivers in anti-pollution areas convert their old diesels.

]]>http://www.thetruthaboutcars.com/2014/12/france-begins-divorce-proceedings-diesel/feed/74France To Provide $22,000 Subsidy For Diesel Drivers Who Switch To EVshttp://www.thetruthaboutcars.com/2014/08/france-provide-22000-subsidy-diesel-drivers-switch-evs/
http://www.thetruthaboutcars.com/2014/08/france-provide-22000-subsidy-diesel-drivers-switch-evs/#commentsThu, 21 Aug 2014 14:27:32 +0000http://www.thetruthaboutcars.com/?p=897386While France already offers a subsidy of $8,400 for consumers who purchase a new electric vehicle, a proposed piece of legislation would see that figure expand for drivers of diesel cars, bringing the total subsidy to a staggering $22,000. The bill, proposed by Segolene Royal (France’s minister for ecology, sustainable development and energy, and a one-time […]

While France already offers a subsidy of $8,400 for consumers who purchase a new electric vehicle, a proposed piece of legislation would see that figure expand for drivers of diesel cars, bringing the total subsidy to a staggering $22,000.

The bill, proposed by Segolene Royal (France’s minister for ecology, sustainable development and energy, and a one-time Presidential candidate) would provide enhanced subsidies for drivers of diesel-powered cars, according to the International Business Times.

With diesel cars being extremely popular in France, the bill would likely give drivers an incentive to scrap their oil-burner in favor of a new electric vehicle – and how convenient it is that French automaker Renault currently offers a range of EVs to suit every purse and purpose.

Although the Twizy is a niche city car, Renault’s Zoe and Kangoo EVs neatly cover the compact hatchback and commercial van markets, both of which are important segments and commonly powered by diesel engines. If a diesel driver took full advantage of the available subsidies – which, under the plan, would amount to an extra 10,000 euros on top of the 6,300 euros already available -, then a 20,700 euro Renault Zoe would cost just 4,400 euros.

While the program is undoubtedly cloaked in environmental benefits, the real gain here is for Renault, and France’s new car market. It’s hard to imagine that legions of diesel car owners wouldn’t be compelled to make the switch to a 4,400 euro new car, even with the limitations that come with owning an EV. Year to date, EV sales are down 12 percent in France, with Renault sales down 6 percent. This move should reverse things tout de suite.

]]>http://www.thetruthaboutcars.com/2014/08/france-provide-22000-subsidy-diesel-drivers-switch-evs/feed/292015 Toyota Yaris Has “European Flavor”, We’re Afraid To Ask…http://www.thetruthaboutcars.com/2014/07/872122/
http://www.thetruthaboutcars.com/2014/07/872122/#commentsWed, 23 Jul 2014 15:00:01 +0000http://www.thetruthaboutcars.com/?p=872122 Toyota is touting a new “European flavor” for the 2015 Yaris. I’m not sure what that means, but it does evoke bad memories of the chevre I left in my suitcase after coming home from the Paris Auto Show. All jokes aside (and that was bahhhhh-d), our Yaris will likely be built in France, but Toyota […]

Toyota is touting a new “European flavor” for the 2015 Yaris. I’m not sure what that means, but it does evoke bad memories of the chevreI left in my suitcase after coming home from the Paris Auto Show. All jokes aside (and that was bahhhhh-d), our Yaris will likely be built in France, but Toyota is looking for a way to both incorporate that into their messaging, and avoid telling everyone that their new subcompact is built by a bunch of socialist surrender monkeys. It’s not easy to explain the poor economics of building a subcompact car in Japan, but telling American consumers that its made in France is likely even more difficult. Not much has changed mechanically, and the 4-speed automatic still remains. C’est la.

]]>http://www.thetruthaboutcars.com/2014/07/872122/feed/62PSA To Cut Labor Costs By Moving More Production Out Of Francehttp://www.thetruthaboutcars.com/2014/05/psa-to-cut-labor-costs-by-moving-more-production-out-of-france/
http://www.thetruthaboutcars.com/2014/05/psa-to-cut-labor-costs-by-moving-more-production-out-of-france/#commentsFri, 23 May 2014 10:00:55 +0000http://www.thetruthaboutcars.com/?p=828857PSA will consolidate their small car production at a factory in Slovakia, as the struggling auto maker looks to cut labor costs and increase margins on small cars. Reuters and Automotive News Europe report that the next-generation Citroen C3, the brand’s best-selling model, will be built in Slovakia, alongside the C3 Picasso minivan and the […]

PSA will consolidate their small car production at a factory in Slovakia, as the struggling auto maker looks to cut labor costs and increase margins on small cars.

Reuters and Automotive News Europe report that the next-generation Citroen C3, the brand’s best-selling model, will be built in Slovakia, alongside the C3 Picasso minivan and the Peugeot 208.

Although the 208 and C3 are currently built at PSA’s Poissy plant as well as in Slovakia, moving them eastward would allow PSA to slash their hourly wage costs, from 57 euros an hour in France, down to 15.50 euros in Slovakia. Lowering labor costs is critical for PSA, as it struggles to regain profitability and reap greater margins on their small cars, which are both unprofitable and PSA’s most popular cars.

Closing any French plant will be fraught with difficulty. Complex labor laws and cultural factors will make closing a plant a political nightmare for PSA – but the economics of Europe’s car market can no longer sustain it.

]]>http://www.thetruthaboutcars.com/2014/05/psa-to-cut-labor-costs-by-moving-more-production-out-of-france/feed/8European-Backed UN Amendment Brings Autonomous Vehicle Future Closerhttp://www.thetruthaboutcars.com/2014/05/european-backed-un-amendment-brings-autonomous-vehicle-future-closer/
http://www.thetruthaboutcars.com/2014/05/european-backed-un-amendment-brings-autonomous-vehicle-future-closer/#commentsTue, 20 May 2014 11:00:13 +0000http://www.thetruthaboutcars.com/?p=826642While autonomous vehicles are still in the early stages of testing, a few of the European members of the United Nations have laid the groundwork for the self-driven future to come sooner than later. Reuters reports the U.N. Working Party on Traffic Safety received last month an amendment to Article 8 of the 1968 Vienna […]

Reuters reports the U.N. Working Party on Traffic Safety received last month an amendment to Article 8 of the 1968 Vienna Convention on Road Traffic backed by Germany, France, Italy, Belgium and Austria that would allow drivers of autonomous vehicles to take their hands off the wheel so long as as the vehicle’s system “can be overridden or switched off by the driver” at any time.

Should the amendment pass through the myriad of red tape within the organizing body, 72 countries — the United States, China and Japan withstanding — would have to work the new legislation into their law books.

The European-backed amendment now means automakers like Mercedes-Benz and BMW can move beyond testing their autonomous and semi-autonomous offerings toward delivery to showrooms throughout the continent, all without waiting for Google and other U.S. interests to bring the technology to market. Mercedes in particular delivered an S-Class limo in response to the search engine giant’s own efforts last August which drove the Bertha Benz route between Mannheim and Pforzheim, Germany without driver input.

]]>http://www.thetruthaboutcars.com/2014/05/european-backed-un-amendment-brings-autonomous-vehicle-future-closer/feed/12French Court Overturns Sales Ban Of Daimler Vehicles Using R134ahttp://www.thetruthaboutcars.com/2014/05/french-court-overturns-sales-ban-of-daimler-vehicles-using-r134a/
http://www.thetruthaboutcars.com/2014/05/french-court-overturns-sales-ban-of-daimler-vehicles-using-r134a/#commentsTue, 06 May 2014 12:00:17 +0000http://www.thetruthaboutcars.com/?p=815986France’s Conseil d’Etat announced Monday that it has overturned the government’s ban of a handful of Mercedes-Benz vehicles over parent company Daimler’s refusal to cease usage of R134a coolant currently under phase-out by the European Union. Reuters reports the ban — issued by France’s ecology minister Ségolène Royal — was overturned after the court found […]

Reuters reports the ban — issued by France’s ecology minister Ségolène Royal — was overturned after the court found her order unjustified, stating the vehicles affected did not show “a serious threat to the environment.”

Though vehicles sold in the EU were mandated to use R1234yf beginning in 2013, Daimler cited potential, unacceptable safety issues with the new coolant. Instead, the automaker continued to use R134a in its A-Class, B-Class, CLA and SL models, which were the vehicles banned from being sold in France. Daimler plans to replace the outgoing coolant with CO2 systems by 2017.

]]>http://www.thetruthaboutcars.com/2014/05/french-court-overturns-sales-ban-of-daimler-vehicles-using-r134a/feed/13PSA Peugeot Citroen, Dongfeng, France Reach Outline Dealhttp://www.thetruthaboutcars.com/2014/02/psa-peugeot-citroen-dongfeng-france-reach-outline-deal/
http://www.thetruthaboutcars.com/2014/02/psa-peugeot-citroen-dongfeng-france-reach-outline-deal/#commentsThu, 13 Feb 2014 16:30:36 +0000http://www.thetruthaboutcars.com/?p=740649PSA Peugeot Citroen, Dongfeng and the French government have reached an outline deal to raise $5.5 billion in capital through a planned share sale in a last-ditch effort by PSA to remain alive after General Motors walked out of a similar deal over the Iranian market last year. Reuters reports the deal will be presented […]

Reuters reports the deal will be presented to the Peugeot board February 18, at which point the board will sign a non-binding memorandum of understanding that same day according to sources closest to the matter. The plan would allow Dongfeng and the French government to each own 14 percent of PSA, while the two automakers retain and expand upon their alliance toward their goal of penetrating further into the Southeast Asia market.

With most of the plan settled, the only item needed to pull everything together is an independent chairman who will oversee the plan’s implementation. The French government wants senior civil servant Louis Gallois, brought aboard under the existing agreement between the state and PSA since 2012, as their champion, while Dongfeng is pushing for French businesswoman and independent Peugeot director Patricia Barbiezt to fulfill the role.

]]>http://www.thetruthaboutcars.com/2014/02/psa-peugeot-citroen-dongfeng-france-reach-outline-deal/feed/4Europe Finally Turning Around? German Registrations Up 7%, Sales Also Rise in France, Spain, Italyhttp://www.thetruthaboutcars.com/2014/02/europe-finally-turning-around-german-registrations-up-7-sales-also-rise-in-france-spain-italy/
http://www.thetruthaboutcars.com/2014/02/europe-finally-turning-around-german-registrations-up-7-sales-also-rise-in-france-spain-italy/#commentsWed, 05 Feb 2014 11:00:14 +0000http://www.thetruthaboutcars.com/?p=733353The European automobile market may be pulling out of its six year sales slump, according to Automotive News, with new car registrations in Germany up 7% in January from last year, joined by France, Italy and Spain reporting year to year increases for the month. German new car sales for the month were 206,000, the […]

The European automobile market may be pulling out of its six year sales slump, according to Automotive News, with new car registrations in Germany up 7% in January from last year, joined by France, Italy and Spain reporting year to year increases for the month. German new car sales for the month were 206,000, the third monthly gain out of the past four months and the best monthly percentage improvement since September 2011. Analysts caution, though, that the growth in the German market was in part due to discounting.

However, industry executives and analysts warned that underlying demand may not be robust as Germany’s growth was in part attributable to generous price discounts. Ernst-Robert Nouvertne, who operates two Volkswagen stores near Cologne, said “Incentives are the name of the game. Headline sales are looking good but profit per car is crumbling. The (German) market is still pretty strained.”

For their part, the VDA trade association said that sales could have been even better but January 2014 had one less sales day than the same month in 2013. “It’s pleasant to see that the stabilization of the German market is continuing at the start of 2014 but we should remain only cautiously optimistic,” Matthias Wissmann, VDA president said. Wissmann noted that January’s increase was boosted by relatively poor sales last year. The VDA said that it expects new car registrations in Germany to rise to about 3 million vehicles this year from 2.95 million in 2013.

French new car sales were up slightly, 0.5% to 125,477 in January. The CCFA industry association forecast stable or slightly higher car sales in France this year.

Sales of new cars and light trucks in Italy were up 3% to 117,802, according to the government’s transport ministry. Industry groups, however, urged caution, attributing part of the increase to pent up demand as car owners finally replace older vehicles after putting off new car purchases while the financial crisis was ongoing. Automotive research group Centro Studi Promotor said in a statement, “In absolute terms, sales of passenger cars [in Italy] remain at levels last seen in the late 1970s.”

Sales of new cars were also up in Spain, +7.6% last month to 53,436 vehicles. Auto manufacturers’ association Anfac said that sales were improved by government subsidies to encourage scrapping old cars.

]]>http://www.thetruthaboutcars.com/2014/02/europe-finally-turning-around-german-registrations-up-7-sales-also-rise-in-france-spain-italy/feed/17Audi Invests In Synthetic Gasoline From Sugarhttp://www.thetruthaboutcars.com/2014/02/audi-invests-in-synthetic-gasoline-from-sugar/
http://www.thetruthaboutcars.com/2014/02/audi-invests-in-synthetic-gasoline-from-sugar/#commentsSat, 01 Feb 2014 08:33:57 +0000http://www.thetruthaboutcars.com/?p=729082Audi’s bio-fuel initiative is expanding into France through an investment by the automaker to Global Bioenergies, whose bio-isooctane could be the replacement for petroleum gasoline when the time comes to make the switch. The bio-fuel is made from fermented sugar through genetic modification of E. coli bacteria to produce isobutane gas without poisoning the yeast […]

The bio-fuel is made from fermented sugar through genetic modification of E. coli bacteria to produce isobutane gas without poisoning the yeast utilized in the fermentation, an issue currently experienced in ethanol production. The longer-lasting process works with feedstocks like corn and sugarcane as well as straight sugar, and can also be adapted to use biomass such as high-glucose wood chips.

At the pump, bio-isooctane can go directly into a vehicle without modification to the engine and fuel-delivery system, or can be blended with petrogasoline in the same manner as E15 and E85. The biogasoline may also come with a lower price per gallon or litres, as the fuel can be produced much quicker and cheaper than ethanol and other bio-fuels.

For the moment, Global Bioenergies is building two working proof-of-concept production plants in Germany and France, whose total annual output is expected to be 100,000 litres. Audi’s investment will be used to help in the rollout of the new fuel as part of the automaker’s branded e-fuel strategy, with bio-isooctane completing the triad with Audi’s investments in ethanol and biodiesel for their complete lineup of vehicles.

]]>http://www.thetruthaboutcars.com/2014/02/audi-invests-in-synthetic-gasoline-from-sugar/feed/45Britain Expected to Build More Cars Than France for the First Time Since 1966http://www.thetruthaboutcars.com/2014/01/britain-expected-to-build-more-cars-than-france-for-the-first-time-since-1966/
http://www.thetruthaboutcars.com/2014/01/britain-expected-to-build-more-cars-than-france-for-the-first-time-since-1966/#commentsTue, 21 Jan 2014 10:00:25 +0000http://www.thetruthaboutcars.com/?p=704122For the first time since 1966, the United Kingdom’s automobile industry will likely build more cars than those built in France. Increasing domestic and export sales are expected to make 2013 a record year for car manufacturing, putting Great Britain in third place among car producing countries in Europe, behind Germany and Spain. UK car […]

For the first time since 1966, the United Kingdom’s automobile industry will likely build more cars than those built in France. Increasing domestic and export sales are expected to make 2013 a record year for car manufacturing, putting Great Britain in third place among car producing countries in Europe, behind Germany and Spain. UK car production is estimated to reach 1.55 million units, up from 1.47 million the previous year and 1.35 million in 2011. In contrast, French car production for 2013 is expected to fall to ~1.54 million units, down from 1.66 million in 2012 and 1.88 million the year before that. Some analysts and industry executives predict UK car production to hit 2 million by 2017 as investments to plants bear fruit.

The growth in manufacturing was attributed to the strength of traditional British brands (albeit foreign owned) such as Jaguar, Land Rover, Mini, Vauxhall, Rolls-Royce and Bentley, as well as strong production at Japanese automakers like Nissan, Toyota and Honda that have set up assembly operations in the UK.

Some have attributed both the survival of those British brands and the growth of transplant assembly facilities to late Prime Minister Margaret Thatcher, whose government both courted Japanese automakers and provided £2.9 billion of taxpayer money in subsidies to British Leyland from 1979 to 1988, allowing iconic British brands to survive long enough to be bought up by the Germans.

At the same time the drop in the production of French cars is attributed with overcapacity, a stagnant European car market in general and in particular the soft domestic French market on which French manufacturers are highly dependant, a lack of business confidence in the current government and currency issues regarding the Euro.

]]>http://www.thetruthaboutcars.com/2014/01/britain-expected-to-build-more-cars-than-france-for-the-first-time-since-1966/feed/16PSA Hires Ex-Renault COO Tavares As Next CEOhttp://www.thetruthaboutcars.com/2013/11/psa-hires-ex-renault-coo-tavares-as-next-ceo/
http://www.thetruthaboutcars.com/2013/11/psa-hires-ex-renault-coo-tavares-as-next-ceo/#commentsTue, 26 Nov 2013 16:45:37 +0000http://www.thetruthaboutcars.com/?p=663874PSA confirmed that former Renault COO Carlos Tavares will take over the reins starting January 1st. Tavares assumes the role at a fortunate point in time for PSA: an alliance with Chinese car maker Dongfeng is underway, and Tavares’ predecessor, Philippe Varin, has already completed the difficult task of closing factories and cutting thousands of […]

Now, Tavares will be tasked with helping PSA turn things around, with a slate of new product, a leaner organization and reorganized brand structure. Despite Varin laying much of the groundwork for a potentially revitalized PSA, Tavares could end up in the right place at the right time – able to fulfill his dream of running a car company, while presiding over a successful turnaround.

]]>http://www.thetruthaboutcars.com/2013/11/psa-hires-ex-renault-coo-tavares-as-next-ceo/feed/2Iran’s Imported Chevrolet Camaros Raise Questions About GM’s Dealings With PSA And The Iranian Regimehttp://www.thetruthaboutcars.com/2013/11/irans-imported-chevrolet-camaros-raise-questions-about-gms-dealings-with-psa-and-the-iranian-regime/
http://www.thetruthaboutcars.com/2013/11/irans-imported-chevrolet-camaros-raise-questions-about-gms-dealings-with-psa-and-the-iranian-regime/#commentsThu, 07 Nov 2013 14:26:41 +0000http://www.thetruthaboutcars.com/?p=644722An obscure story in the Azerbaijani press this past summer may be the tip of a much larger iceberg involving General Motors, PSA Peugeot Citroen and the Western World’s current bete noir: the Iranian regime currently embroiled at the heart of a controversial nuclear program, which is subject to economic sanctions by the United States government, […]

An obscure story in the Azerbaijani press this past summer may be the tip of a much larger iceberg involving General Motors, PSA Peugeot Citroen and the Western World’s current bete noir: the Iranian regime currently embroiled at the heart of a controversial nuclear program, which is subject to economic sanctions by the United States government, including those that specifically target Iran’s automotive industry.

Citing reports from Iran’s Mehr news agency, an Azerbaijani news outlet reported that an unspecified number of brand new Chevrolet Camaro RS 2LT convertibles were imported by a division of Iranian conglomerate Iran Khodro. According to the report, the Camaros were sent from Miami to Paris, and then from Paris to Tehran via a Qatar Airways plane. The report also states that US Customs and Border Patrol documents list the final destination as the Aras Free Trade and Industrial Zone.

Given the serious penalties for violating sanctions against Iran, it seems unthinkable at first glance that General Motors vehicles would be exported to Iran for sale without any consequences. GM even stipulated that PSA suspend doing business with Iran and IKCO as part of its alliance agreement with PSA, an agreement that seems to have stalled at this point. But a deeper dive into the matter reveals a much more complex picture, one that sheds more light on GM’s future positioning in emerging markets, its dealings with Iran itself, and what may be the true nature of its alliance with PSA.

Now, various French news outlets, including Le Figaro, a respected daily newspaper, are accusing General Motors of intentionally gutting PSA’s ability to do business in Iran, while attempting to establish its own partnership with IKCO, as a means of securing a strong footing in the up and coming Iranian market, one that Boston Consulting Group estimates is good for 1.5 million units per year by 2020, making it one of the strongest of the “Beyond BRIC” countries.

Iranian automotive industry is particularly courted by General Motors . The giant came into contact with Iran Khodro, which worked until 2012 with Peugeot to produce 206 and 405 models that the French group has stopped delivering to Iran because of Western sanctions imposed on Tehran for its nuclear ambitions . “For at least six months as emissaries of General Motors go to Iran, they are no longer the simple identification of the market,” warns the industry, “but rather to the draft contract resumption of GM “, which was firmly established in the time of the Shah.

“…a real cleansing of the Iranian car market as it prepares to make way for U.S. manufacturers before a political deal between Tehran and Washington.”

Upon closer examination, sale of the Camaros appears to be allowed under a loophole in Executive Order 13645 , which punishes any foreign entity that sells or supplies parts or services to Iran’s automotive industry (specifically its manufacturing sector) but does not prohibit supplying Iran with assembled vehicles.

During the initial stages of the tie-up, the alliance between GM and PSA was difficult to discern. Beyond vague platform sharing and purchasing agreements, there seemed to be few synergies that made such an alliance worthwhile. By the Iranian angle adds context to the entire affair.

By putting pressure on PSA to end its relationship with IKCO, GM gave America a way to keep the heat on Iran’s economy while also cutting off an artery for hard currency via reduced vehicle exports. At the same time, it was able to cripple an already ailing partner by cutting it off from one of its better export markets, and a growing one at that. Before the alliance had even been former, our own global sales reports showed that sanctions and other economic factors had been effective at gutting Iran’s automotive market, composed largely of locally built IKCO/PSA products. The departure of Renault was another positive development for GM, with the French auto maker walking away from 100,000 units annually. Altogether, the absence of the two French players leaves a 585,000 unit hole in Iran’s nearly 1 million strong auto market, one that GM is primed to capitalize on if and when things get less frosty and trade relations between the two countries open up .

Many observers feel that Iran’s Islamic regime is living on borrowed time, thanks to a relatively young population that is plugged into Western popular culture – these same people came very close to toppling the regime just a few years ago. And while regime change doesn’t seem to be in the cards anymore, then the very sanctions designed to bring the regime to its knees might at least foment some sort of normalization of relations in exchange for the forfeiture of Iran’s nuclear program, along with a new, more moderate ruler (though Iran’s unelected religious leaders still hold all the power). Such vast numbers of young people with rising economic prospects and families of their own on the horizon will be perfect consumers for a large number of automobiles in the future, and who better to serve them than General Motors?

The timing is likely to be fortuitous, as Iran’s auto market is expected to grow by another 500,000 units, to roughly 1.5 million units by the end of the decade. GM’s push won’t be centered around Camaros either. The General has a number of Chinese brands selling cheap, compact vehicles that can go head to head with Chinese brands like Great Wall that are already established in Iran. If GM really does make a big push into Iran, brands like Wuling and Baojun will be just as important as Chevrolet and Buick, and will likely be part of an attempt to capture a substantial amount of volume by utilizing multiple brands in GM’s portfolio to help capture various market segments from compact low-cost cars to flashier fare to the smaller commercial vehicles that brands like Wuling are known for.

Platform sharing, the oft reported cause of death of the GM-PSA alliance, may have been a red herring all along. GM could possibly have decided to abandon the alliance, or any pretense of it, after getting what they came for: in this case, an express pass to a promising emerging market that isn’t a BRIC country. But don’t count PSA out just yet. Recent talks with Chinese auto maker Dongfeng could allow it to get back in the game in Iran, free of any concerns about violating U.S. sanctions.

]]>http://www.thetruthaboutcars.com/2013/11/irans-imported-chevrolet-camaros-raise-questions-about-gms-dealings-with-psa-and-the-iranian-regime/feed/36French July Sales Slightly Up, Glimmer of Hope?http://www.thetruthaboutcars.com/2013/08/french-july-sales-slightly-up-glimmer-of-hope/
http://www.thetruthaboutcars.com/2013/08/french-july-sales-slightly-up-glimmer-of-hope/#commentsFri, 02 Aug 2013 10:30:40 +0000http://www.thetruthaboutcars.com/?p=497805A glimmer of hope that the European car market is stabilizing might be seen in the fact that for the first time in nearly two years, French car sales were up in July. Car registrations were up 0.9% to 150,248 for the month, with French brands Renault and the financially troubled PSA/Peugeot-Citroen group up. […]

A glimmer of hope that the European car market is stabilizing might be seen in the fact that for the first time in nearly two years, French car sales were up in July.

Car registrations were up 0.9% to 150,248 for the month, with French brands Renault and the financially troubled PSA/Peugeot-Citroen group up. Recent model launches and dealer discounts are attributed for the gains. Overall sales, though, still reflect the soft European market. Toyota was up 24%, and while Renault, Peugeot, Fiat, Hyundai and BMW also posted gains, VW Group, Opel, Ford, and Kia were down from last year.

For domestic French brands, Peugeot was up 4.6%, Citroen was down 3.2% and Renault, helped by its new Captur subcompact SUV and a 6.1% increase of the low-cost Dacia brand, was up 4.7% overall, +4.2% on Renault branded cars. Mercedes-Benz was down in the wake of its continuing dispute with French authorities over Mercedes-Benz’s refusal to use R1234yf refrigerant. Audi sales were unchanged.

]]>http://www.thetruthaboutcars.com/2013/08/french-july-sales-slightly-up-glimmer-of-hope/feed/0French Government Ignored Court Ruling, Invokes EU “Safeguard Procedure” to Reinstitute Ban On Mercedes-Benz Cars W/ R134a Refrigeranthttp://www.thetruthaboutcars.com/2013/07/french-government-ignored-court-ruling-invokes-eu-safeguard-procedure-to-reinstitute-ban-on-mercedes-benz-cars-w-r134a-refrigerant/
http://www.thetruthaboutcars.com/2013/07/french-government-ignored-court-ruling-invokes-eu-safeguard-procedure-to-reinstitute-ban-on-mercedes-benz-cars-w-r134a-refrigerant/#commentsTue, 30 Jul 2013 14:00:12 +0000http://www.thetruthaboutcars.com/?p=497423The regulatory and verbal war between France and Germany over Mercedes-Benz’s refusal to switch to the R1234yf air conditioning refrigerant has escalated. After a French court ordered a 10 day stay, lifting that country’s ban on R134a equpped A Class, B Class, CLA and SL cars made since June, Daimler expressed confidence that the French […]

The regulatory and verbal war between France and Germany over Mercedes-Benz’s refusal to switch to the R1234yf air conditioning refrigerant has escalated. After a French court ordered a 10 day stay, lifting that country’s ban on R134a equpped A Class, B Class, CLA and SL cars made since June, Daimler expressed confidence that the French government would abide by that ruling. That confidence was apparently badly placed because the French government has now invoked a “safeguard procedure” of the EU that allows member countries to act unilaterally to avoid a serious risk involving the environment, public health or traffic safety, reinstituing the ban. Daimler promised that it would continue fighting to allow the sale of those cars in France. It claims that the new refrigerant is dangerously flammable and toxic.

The French environment ministry said, “The registration of Daimler/Mercedes vehicles classes A, B, CLA and SL remain banned in France as long as the company does not conform to active European regulation.” Daimler responded by calling the decision “absolutely inexplicable” and promised more litigation. Eu officials said the were talking with both the French and German national governments to schedule bilateral talks in September in an attempt to resolve the dispute.

While French officials frame the matter as an environmental issue, Mercedes-Benz supporters think that national politics and favoring local automakers is a factor. PSA Peugeot Citroën have asked for government financing and Renault has struggled as the European market has had its worst year in decades, particularly with small and medium sized cars. German companies, BMW, Daimler and the VW group, which all make larger, more expensive cars, have been doing better, particularly in emerging global markets. German chancellor, Angela Merkel, angered the French last month when she blocked EU efforts to institute more stringent controls on emissions from large cars.

The head of the Association of Mercedes-Benz dealers in France, Jean-Claude Bernard, said the action was intended “to please the greens and damage a German manufacturer. This coolant is used in 95 per cent of cars in France with air conditioning. If it is so dangerous they should take them all off the road.” Bernard’s group says that about 5,000 deliveries have been affected so far, that orders were down 20% and that the Mercedes models involved represented about half of his association members’ sales, about 30,000 units annually. He demanded an end to the R134a ban and wrote to the French minister for the environment claiming that 11,000 jobs in France were endangered by the ban.

]]>http://www.thetruthaboutcars.com/2013/07/french-government-ignored-court-ruling-invokes-eu-safeguard-procedure-to-reinstitute-ban-on-mercedes-benz-cars-w-r134a-refrigerant/feed/9French Court Backs Mercedes-Benz in R1234yf/R134a Dispute with EUhttp://www.thetruthaboutcars.com/2013/07/french-court-backs-mercedes-benz-in-r1234yfr134a-dispute-with-eu/
http://www.thetruthaboutcars.com/2013/07/french-court-backs-mercedes-benz-in-r1234yfr134a-dispute-with-eu/#commentsFri, 26 Jul 2013 12:00:54 +0000http://www.thetruthaboutcars.com/?p=497098After a French court lifted that country’s ban on Mercedes-Benz cars equipped with R134a air conditioning refrigerant, saying that the French ministry for the environment must reevaluate their decision to block those cars, Daimler said that it was “very confident’ that the French government will abide by that court ruling. R134a has been banned for […]

After a French court lifted that country’s ban on Mercedes-Benz cars equipped with R134a air conditioning refrigerant, saying that the French ministry for the environment must reevaluate their decision to block those cars, Daimler said that it was “very confident’ that the French government will abide by that court ruling. R134a has been banned for use in new model cars by the EU since the start of 2013.

According to the summary ruling, the ministry has 10 days to decide if it’s going to try to continue the ban on Mercedes A-class, B-class and SL cars built after June 12, which Daimler has equipped with R134a, now banned by the EU because it is considered a powerful greenhouse gas. The ruling does not force French authorities to allow registrations of those cars during that 10 day period.

A Daimler spokesman said: “We welcome the positive decision of the French court, which clearly rejected the French registration authority (decision) to prevent the registration of our cars.”

If the ban is upheld, it would affect about 29,000 cars annually, about 2% of Mercedes-Benz’s worldwide sales.

]]>http://www.thetruthaboutcars.com/2013/07/french-court-backs-mercedes-benz-in-r1234yfr134a-dispute-with-eu/feed/30PSA’s Financing Unit Set To Win EU Approval For State Aid By Next Weekhttp://www.thetruthaboutcars.com/2013/07/psas-financing-unit-set-to-win-eu-approval-for-state-aid-by-next-week/
http://www.thetruthaboutcars.com/2013/07/psas-financing-unit-set-to-win-eu-approval-for-state-aid-by-next-week/#commentsThu, 25 Jul 2013 12:30:24 +0000http://www.thetruthaboutcars.com/?p=496954A $9.25 billion (€7B) loan guarantee from the French national government for the Banque PSA Finance arm of PSA/Peugeot-Citroen, Europe’s second largest car company, will likely gain approval from European Union regulators next week, according to sources cited by Reuters and Bloomberg. The guarantee is aimed at ensuring the carmaker’s viability by allowing it to […]

A $9.25 billion (€7B) loan guarantee from the French national government for the Banque PSA Finance arm of PSA/Peugeot-Citroen, Europe’s second largest car company, will likely gain approval from European Union regulators next week, according to sources cited by Reuters and Bloomberg.

The guarantee is aimed at ensuring the carmaker’s viability by allowing it to offer competitive financing rates to car buyers. The EU Commission is still in talks with PSA over their restructuring plan which would cut 11,200 jobs and close the Citroen plant at Aulnay, outside of Paris.

Peugeot’s automotive unit burned through 3 billion euros ($3.96B) in cash last year. Bloomberg reports that the French automaker is in discussions with banks on how to put its financial house in order, with options including selling off a stake in Banque PSA Finance or other assets to increase its capital.

]]>http://www.thetruthaboutcars.com/2013/07/psas-financing-unit-set-to-win-eu-approval-for-state-aid-by-next-week/feed/4French Authorities Sell Off Ultra Luxury Cars Seized From Son of Dictatorhttp://www.thetruthaboutcars.com/2013/07/french-authorities-sell-off-ultra-luxury-cars-seized-from-son-of-dictator/
http://www.thetruthaboutcars.com/2013/07/french-authorities-sell-off-ultra-luxury-cars-seized-from-son-of-dictator/#commentsWed, 17 Jul 2013 16:25:03 +0000http://www.thetruthaboutcars.com/?p=495570While Equitorial Guinea is one of the wealthiest countries in Africa, only half of the people have access to clean, safe drinking water. One fifth of children born in the country die before they are five years old. Two years ago the French government raided the €80 million, 101-room mansion near the Champs Elysees belonging to Teodorin […]

While Equitorial Guinea is one of the wealthiest countries in Africa, only half of the people have access to clean, safe drinking water. One fifth of children born in the country die before they are five years old. Two years ago the French government raided the €80 million, 101-room mansion near the Champs Elysees belonging to Teodorin Obiang, the son of the president of Equatorial Guinea, Teodoro Obiang Nguema Mbasogo, in power since 1979. Among the treasures found in the mansion were a cache of supercars, which have now been sold off.

The raid was part of a “bien mals aquis” investigation into ill-gotten gains. According to French authorities, those ill-gotten gains were funds belonging to the African country looted by the Obiang family. Though Obiang is claiming diplomatic immunity due to having been named Second Vice President of Equatorial Guinea, a recent ruling in French courts said that such immunity did not protect property bought with stolen public money. As a result of that ruling, French authorities have gone through with the seizure of vintage wines, antique furniture, fine art including a Degas and a Renoir, and jewelry from the mansion as well as Teodorin Obiang’s impressive collection of low mileage high dollar cars. Those cars have now been sold off by the Drouot auction house in Paris, fetching over $4 million (€3.1 million, £2.7 million), and included two Bugattis, two Bentleys, a Rolls-Royce, a Ferrari, a Porsche, a Maserati and a Maybach.

Court documents show that 4 years ago, Obiang imported 26 high end luxury cars worth $12 million to France from the United States. The fleet was comprised of one each from Aston Martin, Porsche, Lamborghini and Maserati, plus two Bugattis, four Mercedes-Benzes, four Rolls-Royces, five Bentleys, and seven Ferraris. Despite the fact that the roads in Equatorial Guinea are generally not paved and require serious 4X4 vehicles, many of those cars were shipped to Africa for his use there. The cars that were auctioned were the ones left in his Paris pied a terre.

]]>http://www.thetruthaboutcars.com/2013/07/french-authorities-sell-off-ultra-luxury-cars-seized-from-son-of-dictator/feed/16Junkyard Find: 1989 Peugeot 405 Shttp://www.thetruthaboutcars.com/2013/07/junkyard-find-1989-peugeot-405-s/
http://www.thetruthaboutcars.com/2013/07/junkyard-find-1989-peugeot-405-s/#commentsSat, 13 Jul 2013 13:00:15 +0000http://www.thetruthaboutcars.com/?p=494968Peugeot gave up on the North American market after the 1991 model year, thanks to poor sales of their new 405. I haven’t seen one of these cars on the street for at least 15 years, and junkyard sightings have been correspondingly rare. When I spotted this car at a Northern California self-serve yard a […]

]]>Peugeot gave up on the North American market after the 1991 model year, thanks to poor sales of their new 405. I haven’t seen one of these cars on the street for at least 15 years, and junkyard sightings have been correspondingly rare. When I spotted this car at a Northern California self-serve yard a couple months back, it took me a moment to figure out what it was.Nearly 200,000 miles on the clock, which is comparable to what I see on (non-Mitsubishi) Japanese cars of the same era.When the company that built your car retreats from your continent, keeping it on the street becomes quite a challenge. This one made it to age 24.The only Peugeot I’ve ever owned was a 504 that came with a bunch of Linda Ronstadt 8-tracks. I liked that car, in spite of its frequent breakdowns (yes, I know, the 504 is supposedly bulletproof everywhere else in the world).

We have a few Peugeot 405 Mi16s racing in the 24 Hours of LeMons (they’re quite affordable, i.e. less than scrap value in most cases). They’re somewhat quick, but they tend to be pretty blow-uppy. Here’s one depositing a connecting rod in the windshield of a following car.

]]>http://www.thetruthaboutcars.com/2013/07/junkyard-find-1989-peugeot-405-s/feed/62PSA, GM Discussing A Return For Peugeot And Citroen Products In The USAhttp://www.thetruthaboutcars.com/2013/07/psa-gm-discussing-a-return-for-peugeot-and-citroen-products-in-the-usa/
http://www.thetruthaboutcars.com/2013/07/psa-gm-discussing-a-return-for-peugeot-and-citroen-products-in-the-usa/#commentsWed, 10 Jul 2013 13:50:10 +0000http://www.thetruthaboutcars.com/?p=494756No, the headline is not just empty click-bait. According to La Tribune, GM and PSA are looking at bringing some current Peugeot and Citroen products to America. The only catch is that they’d be commercial vans. The Citroen Jumpy and Peugeot Expert, the two vans in question, are currently built in a joint venture with Fiat due […]

No, the headline is not just empty click-bait. According to La Tribune, GM and PSA are looking at bringing some current Peugeot and Citroen products to America. The only catch is that they’d be commercial vans.

The Citroen Jumpy and Peugeot Expert, the two vans in question, are currently built in a joint venture with Fiat due to expire in 2017. PSA is looking for a replacement solution, and with GM currently buying vans from Nissan (their NV vans are going to be sold as Chevrolets), it would be advantageous for GM to take advantage of their alliance with PSA and get something out of the deal.

]]>http://www.thetruthaboutcars.com/2013/07/psa-gm-discussing-a-return-for-peugeot-and-citroen-products-in-the-usa/feed/25Renault About To Get Going In Chinahttp://www.thetruthaboutcars.com/2013/07/renault-about-to-get-going-in-china/
http://www.thetruthaboutcars.com/2013/07/renault-about-to-get-going-in-china/#commentsMon, 08 Jul 2013 12:32:14 +0000http://www.thetruthaboutcars.com/?p=494530 Renault hopes to get going on its foray into China, and to sign a joint venture agreement with Dongfeng, Reuters says. “We are waiting for an official invitation from the Chinese industry ministry,” Reuters heard from an insider. Rumors of an impending JV kept Chinese media guessing and speculating for years. Total investment is […]

Renault hopes to get going on its foray into China, and to sign a joint venture agreement with Dongfeng, Reuters says. “We are waiting for an official invitation from the Chinese industry ministry,” Reuters heard from an insider. Rumors of an impending JV kept Chinese media guessing and speculating for years.

The fight over the flammable refrigerant takes a new twist. France refused to register Mercedes A-Class, B-Class and SL cars assembled since June 12, even though German authorities have approved them, a Daimler spokesman told Reuters.

Under the EU Whole Vehicle Type Approval system, cars approved in one EU country are supposed to be automatically legal in all.

An EU official told the wire that France blocked the registration because the cars contained a coolant that was not permitted in the EU. Daimler refused to use the coolant 1234yf, saying that it could result in deadly fires. Often dubbed the “killer coolant,” 1234yf is the only air conditioning coolant on the market that conforms to a new European Union directive on greenhouse gases.

]]>http://www.thetruthaboutcars.com/2013/07/killer-coolant-wars-france-blocks-mercedes-registrations/feed/27PSA On The Death-Bed: Worth More Dead, Or Cut Up Into Parts?http://www.thetruthaboutcars.com/2013/07/psa-on-the-death-bed-worth-more-dead-or-cut-up-in-parts/
http://www.thetruthaboutcars.com/2013/07/psa-on-the-death-bed-worth-more-dead-or-cut-up-in-parts/#commentsFri, 05 Jul 2013 15:16:44 +0000http://www.thetruthaboutcars.com/?p=494285Imagine (sorry) you are on your death-bed, surrounded by your friends and families, who are divided in two camps. One group bets big on how soon you will die. The other group calculates how much your body-parts will bring after you are cut up. Now you know how PSA poor Peugeot Citroen must feel. According […]

Imagine (sorry) you are on your death-bed, surrounded by your friends and families, who are divided in two camps. One group bets big on how soon you will die. The other group calculates how much your body-parts will bring after you are cut up. Now you know how PSA poor Peugeot Citroen must feel.

According to Reuters, the battered PSA stock jumped 8 percent yesterday after Goldman Sachs said the company is worth more than the €6.7 a share, if one would “focus on a SOTP (sum of the parts) valuation.” Usually, the whole is supposed more than the sum of the parts, but in the perverted world of financial double-speak, SOTP valuation means the parts could be worth more than the sum. That seems to be the case here. The market is betting that Peugeot is being broken up and sold by the piece.

Until yesterday, the market was betting big that PSA would croak. Says Reuters: “Hedge funds have been betting on falls in Peugeot’s shares, making it one of the biggest short-selling targets in Europe in the past year. According to data from Markit, 10.2 percent of Peugeot shares outstanding are out on loan.”

So what would you be saying if you overhear the discussions of the two camps by your sickbed? I know what I would say: “Nurse, crank up the Morphine.”